Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil.
Brent crude futures climbed $2.90, or 2.5%, to $116.28 a barrel by 12:33 p.m. EDT (1633 GMT). U.S. West Texas Intermediate (WTI) crude rose $2.35, or 2.1%, to $111.92 a barrel.
Both contracts extended the previous session’s gains of nearly 2% after the Group of Seven economic powers vowed to ratchet up existing Western pressure on Russia from sanctions over its invasion of Ukraine.
G7 leaders have agreed to explore imposing a ban on transporting Russian oil that has been sold above a certain price, aiming to deplete Moscow’s war chest.
Russian oil export revenue climbed in May even as volumes fell, the International Energy Agency said in its June report.
Western bans on Russia and its oil and gas output have led to a sharp rise in global energy prices, and other major producers have yet to implement a significant boost to supplies.
Saudi Arabia and the UAE have been seen as the only two members of the Organization of the Petroleum Exporting Countries with spare capacity to make up for lost Russian supply and weak output from other member nations.
